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NICE Ltd ADR NICE

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Nice Reports a Solid Quarter Highlighted by Strength in Cloud and Profitability; Raising FVE to $242

Dan Romanoff, CPA Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

Narrow-moat Nice reported solid fourth-quarter results, with revenue above company guidance but below FactSet consensus expectations, and adjusted earnings beating both guidance and consensus. Growth in the quarter was driven entirely by cloud revenue acceleration and increasing adoption, foremost in customer engagement with Nice’s CXone platform, but excitingly as well in the financial common compliance and financial crime markets. Reflecting on the year, we view pandemic-induced accelerated cloud digital and artificial intelligence adoption within Nice’s end markets to be long-term value-adding catalysts for the company. Based on better all-around guidance and our annual model roll, we are raising our fair value estimate to $242 from $199. With shares trading consistently above $250, we view shares as fairly valued.

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Company Profile

Business Description

Nice is an enterprise software company that operates in two segments: customer engagement and financial crime and compliance. The company develops on-premises and cloud software based on data analytics. In customer engagement, Nice uses its software to offer services in both workforce engagement management and contact center infrastructure (CCI), serving both niches. WEM products optimize call center efficiency, using data for call volume forecasting and scheduling. Nice’s CCI products are cloud-based infrastructure products for back-end call routing. In financial crime and compliance, Nice sells anti-money-laundering, risk management, and fraud prevention software products.

Contact
13 Zarchin Street, P.O. Box 690
Ra'anana, 4310602, Israel
T +972 97753151
Sector Technology
Industry Software - Application
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type
Employees 5,996